Coldcard Warns Users of Potential Security Risks in Certain Bitcoin Wallets

Coldcard's maker Coinkite has issued an alert to users regarding a potential security risk in certain Bitcoin wallets. The issue affects devices running firmware versions 4.0.1 through 5.0.3, which may have weak seed phrase generation.

The warning comes after a coordinated sweep of 594.48 BTC across 500 transactions, although no direct link has been confirmed between the firmware issue and the movement of funds. Coinkite recommends users generate new seeds on unaffected devices and carefully migrate their funds while investigations continue.

Newer Coldcard models are not affected by this issue, and the company advises using strong passphrases or dice-generated seeds as temporary safeguards.